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Buying A House vs Renting One. What Makes Sense In 2020? | Chola MS

As cliché, as it sounds, owning a home, is the ultimate dream of every typical Indian. However, it is better to do the math and make it a calculated decision, for it is a long-term investment.

Though the dream remains, most Indians opt for renting a house because most metropolitan cities have sky-rocketing real estate rates. With that being said, making a decision between buying and renting a house is difficult, even with people who can afford to own a house.

With one advocating the expenditure in a rental scenario is far lesser than owning and the other arguing about the sense of ownership and the freedom it offers in a buying scenario, which makes this debate a never-ending battle. So, let us take a look at the advantages of both options.

Owning a House:

  • There’s nothing that beats the satisfaction and pride of owning a house.
  • Even though you have to provision for paying EMI every month, it makes up for paying rent and most importantly every EMI payment increases the percentage of your ownership in the house.
  • There is no hassle of dealing with landlords or house owners and having to relocate because of forced increase in rent or owner’s wishes.
  • Owning a home makes a safe investment with a solid potential of return on investment with property appreciation and not to forget the tax benefits.
  • With ownership also comes the benefit of mortgaging the property if you are in need of financial assistance.

Renting a House:

  • Renting clearly means lower liability. The amount you pay as rent is a lot lesser than the EMI costs for the same house.
  • With renting a house, there is no burden of EMIs, house tax, and other financial issues that come along with it.
  • Renting gives us the option of choosing the location that is both safer and convenient in terms of the distance, but the properties in the same location might not be affordable.
  • It offers flexibility, a predictable expenditure, and most importantly the freedom to relocate as and when you feel like.
  • A rental arrangement helps you save money that can be put into other investments.


Key Points to be taken into consideration before making a decision:

  • Investing in real estate for most Indians is more of an emotional decision rather than a financial one. So, it is important to analyses whether or not you are ready for a commitment and all the responsibilities that come along with this huge decision.
  • Most Indians also make the decision of buying because of peer pressure. It is best to see whether or not it is affordable for you. Also, take into consideration the other pending debts and loans if any.
  • Any and every decision in an Indian household involves taking the benefits of the entire family into consideration. So, it is really important to weigh down the pros and cons of raising a family in a luxurious rental apartment vs. owning a decent apartment that is affordable.
  • If you are making a long-term investment, ensure it has a solid potential for return on investment. For example, with the increase in rental prices, you can always rent out your apartment instead of living in it.
  • If you are more inclined towards renting an apartment, you can always make an alternative investment that you are comfortable with.

With all of that being said, the ultimate decision is with you. Buying or renting a home is not just money, but more about comfort and the kind of lifestyle you want for your family. So, choose wisely. Also look at home insurance policy provided by Chola MS for securing your house or property for long time.

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